Federal Court of Appeal Rules on Pay Equity at Canada Post

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The Federal Court of Appeal dismissed an appeal by the Public Service Alliance of Canada (PSAC) and upheld the Federal Court’s ruling that set aside the decision of the Canadian Human Rights Tribunal (CHRT) granting pay equity to the female employees.

In 1983, PSAC had filed a complaint on behalf of the Clerical and Regulatory Group at Canada Post. The union alleged that Canada Post was discriminating against employees in this female-dominated group by paying employees in the male-dominated Postal Operations Group more for work of equal value, contrary to section 11 of the Canadian Human Rights Act. The union sought equal pay for the Clerical and Regulatory Group, retroactive to October 15th, 1981.

In 2005, the Canadian Human Rights Tribunal upheld PSAC’s complaint. Canada Post sought judicial review of this decision. In 2008, the Federal Court allowed Canada Post’s application for judicial review, finding that the Tribunal had made two errors, each of which was sufficient to warrant the overturning of the decision.

The Federal Court found that the Tribunal had failed to establish a necessary element of wage discrimination. The Tribunal had set out the following four factors, which are required in order to make out a prima facie case of wage discrimination:

1) the complainant occupational group is predominately of one sex, and the comparator is predominantly of the other;

2) the groups are employed in the same establishment;

3) the work being compared is of equal value; and

4) there is a “wage gap” between the two groups.

The Federal Court concluded that the Tribunal made errors in its application of the third part of the test – the work being compared is of equal value – and rendered its final determination that wage discrimination was unreasonable.

The Federal Court of Appeal dismissed PSAC’s appeal and upheld the decision of the Federal Court.

On April 23rd, 2010, PSAC filed an application for leave to appeal this decision to the Supreme Court of Canada. We will keep you updated on the progress of this application.